We develop a structural DSGE model to systematically study the principal tools of unconventional monetary policy - quantitative easing (QE), forward guidance, and negative interest rate policy (NIRP) - as well as the interactions between them. To generate the same output response, the requisite...

We develop a structural DSGE model to systematically study the principal tools of unconventional monetary policy -- quantitative easing (QE), forward guidance, and negative interest rate policy (NIRP) -- as well as the interactions between them. To generate the same output response, the...

We develop a structural DSGE model to systematically study the principal tools of unconventional monetary policy – quantitative easing (QE), forward guidance, and negative interest rate policy (NIRP) – as well as the interactions between them. To generate the same output response, the...

The Federal Reserve (Fed) is tasked with maintaining price stability and achieving maximum employment. In practice, over the last decades the Fed has sought to achieve its objectives primarily through the manipulation of a short-term inter-bank interest rate, the federal funds rate (FFR).At the...

We evaluate the implications of the ECB's negative interest rate policy (NIRP) on the yield curve. To capture various shapes of the short end of the yield curve induced by the NIRP, we introduce two policy indicators, which summarize the immediate and longer-horizon future monetary policy...